Joint venture with local partner envisaged SHANGHAI, China, Nov. 12 /PRNewswire/ -- General Motors Acceptance Corporation (GMAC), one of the world's leading automotive financial services providers, today announced its China business has achieved a major milestone by becoming the first foreign auto financing company to apply for a license to conduct business in China. GMAC, a wholly owned subsidiary of General Motors, has agreed to form a joint venture with the Chinese partner Shanghai Automotive Group Finance Co. Ltd. (SAICFC). The partners filed their application after the China Banking Regulatory Commission announced the auto financing regulations and the implementation guidelines that essentially open the door for license applications. "As part of GM's commitment to China's automotive market and consumers, GMAC is eager to bring its best practices in automotive financing and services to China so as to benefit Chinese vehicle buyers as well as the overall development of the auto market," said Richard J.S. Clout, Executive Vice President of GMAC International Operations. "We see great market potentials in the auto finance segment in China," said Clout. "Globally auto manufacturers sell about 70 percent of their production through auto finance deals while in China it is a meager 15 to 20 percent. We expect auto financing business will grow 60-80 percent in the coming years." GMAC will form with its partner SAICFC an Automotive Financial Institution with the headquarters of the new company based in Shanghai. After the approval of the license the joint venture will start to support the sale of Shanghai GM (SGM) vehicles -- the joint venture between General Motors Corp. and Shanghai Automotive Industry Corporation Group (SAIC) -- throughout their franchised dealer network and offer wholesale and retail finance products. GMAC and SAICFC will share their complementary business resources, GMAC's vast experience in global auto finance and many innovative auto finance products as well as SAICFC's deep knowledge of the Chinese market and local business practices. "We are bringing to the market our specialized automotive financing expertise for more than 75 years. And we are here to support those customers who are in need of funds to buy cars -- this fulfills GM's long term commitment to the growth of China's auto industry," said Clout. "Having commenced our internal preparations for business in China already in 1998, we are very glad that the regulations have now been issued and we look forward to be able to start business in this exciting and dynamic market in the near future," said Clout. "GM's commitment to China is well documented through delivering world class products and technology to China. Now it is time -- and we are eager -- to deliver the best auto financing practice to China. This joint venture, which represents the latest extension of the strategic cooperation between GM and SAIC in China, is well positioned to do just that," said Phil Murtaugh, Chairman and CEO of the GM China Group. General Motors, the world's largest vehicle manufacturer, designs, builds and markets cars and trucks worldwide. Last year it sold more than 8.5 million vehicles in more than 190 countries and territories around the world. GM has five joint ventures, two wholly owned foreign enterprises and nearly 9,000 employees in China. General Motors Acceptance Corporation, a wholly owned subsidiary of General Motors, is one of the world's largest financial services companies with business lines in automotive finance, commercial and residential mortgages, and insurance. GMAC has operations in 41 countries and, since inception in 1919, has extended more than $1 trillion in credit to help finance more than 150 million vehicles worldwide. Shanghai Automotive Group Finance Co. Ltd. (SAICFC) is a subsidiary of Shanghai Automotive Industry Corporation (SAIC Group). SAICFC is one of China's most successful non-bank financial institutions with a registered capital of RMB 1 billion and total assets of RMB 21.8 billion as of end of 2002. SAICFC specializes in providing consumer credit, buyer's credit and financial leasing as well as entrusted loans, etc. Its auto financing business has now covered the entire China via the SAIC Group dealer network. SOURCE GMAC /NOTE TO EDITORS: For additional media information, visit http://media.gm.com ./ /CONTACT: Rainer Schlitt of GMAC International Operations, +49-6142-604-568; or Daphne Zheng of GM China, +86-21-6875-8833, ext. 7631/ /Web site: http://media.gm.com http://www.gm.com / (GM) CO: GMAC; Shanghai Automotive Group Finance Co. Ltd. ST: Michigan, China IN: AUT FIN SU: JVN LIC
GMAC is First to Apply for Auto Financing License in China
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